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What is a hard credit inquiry?

A woman sits on a couch with a dog and looks at a laptop while holding a credit card.
Hard inquiries stay on your credit report for two years, but stop factoring into your credit score after just one. Oscar Wong/Getty

  • A hard inquiry is a request from lenders to view your credit report when you apply for credit.
  • Hard inquiries no longer affect your credit score after a year and fall off your credit report after two years.
  • While hard inquiries lower your credit score, soft inquiries do not affect your credit at all.

A credit inquiry is a request, typically from a lender, for credit report information from one or all three of the credit bureaus. When you apply for a loan, a lender will pull your credit report, known as a hard inquiry or hard pull, to assess the risk that you pose as a borrower. Hard inquiries are recorded on your credit report and will lower your credit score by a few points.

Too many hard inquiries in a short period of time will have a greater effect on your credit score, prompting creditors to wonder why you're trying to borrow all this money at once and if you're good for it. However, in moderation, the threat of a hard inquiry lowering your credit score shouldn't stop you from applying for a new line of credit. Read on to see how hard inquiries affect your credit.

What is a hard inquiry?

Definition of a hard inquiry

Hard inquiries trigger when a creditor needs to assess your credit history to determine your risk as a borrower. They're typically pulled when considering applications for new credit accounts but can also be pulled when you're requesting a credit limit increase.  

When a creditor does a hard pull on your credit, that inquiry is recorded on your credit report. It's also factored into your credit score calculation by the credit scoring algorithms FICO and VantageScore. This type of inquiry usually lowers your credit score by three to seven points.

However, you shouldn't let the credit score drop from opening a new line of credit deter you from opening a new account. As long as you make your payments on time, you stand to gain more from a new line of credit than you lose with the one-time ding on your credit. "In six months from now, that new account is going to start turning into a good thing for your credit report," says Jeanne Kelly, a credit-building coach. 

How do hard inquiries affect credit?

Hard inquiries affect your credit because of how credit scores are calculated by credit scoring algorithms. Though we don't know how FICO and VantageScore calculate their scores exactly, we have a rough estimate of the factors considered and how heavily they affect your score. These factors are as follows:

FICOVantageScore
Payment history (35%)

Credit balance (30%)

Length of credit history (15%)

New credit (10%)

Mix of credit accounts (10%)
Payment history (40%)

Length & type of credit (21%)

Percent of credit used (20%)

Total debt/balances (11%)

Recent credit behavior and inquiries (5%)

Available credit (3%)

Immediate impact

Under FICO, hard inquiries fall under "new credit," accounting for 10% of your FICO score. VantageScore puts less weight on inquiries, accounting for just 5% of your credit score. Inquiries don't impact your score very heavily, which is why one inquiry will only result in a single-digit drop in your credit score. However, they still affect your credit score, so it's important to be mindful of how often you take out a loan or open a credit card.

For a less mechanical explanation of hard inquiries, you can think of hard inquiries from a creditor's perspective. When a loan application triggers a hard inquiry, it signifies that a consumer is requesting to open a new line of credit. While a single inquiry in a blue moon won't raise much concern, too many hard inquiries, and Kelly says that a creditor might wonder, "Why is this person getting credit? What's happening? Why do they need all four or five new accounts?"

Additionally, the more credit accounts you own, the higher your total monthly payments will be. The higher those payments are, the less likely you are to pay them off. 

Hard vs. soft credit inquiries

Not all credit checks are considered hard pulls. In fact, the vast majority of credit checks are considered soft inquiries. These pulls on your credit report don't involve credit or borrowing money. 

Instances where third parties pull soft inquiries involve credit checks for insurance underwriting, credit checks for employment, and credit checks from creditors for pre-approved offers. Whenever you request to see your free credit report through AnnualCreditReport.com, that also counts as a soft inquiry. Some of the best credit monitoring services also supply you with credit reports, which will appear as soft inquiries on your credit reports.

Differences between hard and soft inquiries

There are several key differences between a hard inquiry and a soft inquiry. Most notably, soft inquiries don't affect your credit score. Not only don't they affect your credit score, but creditors can't even see your soft inquiries. They're only visible on the credit reports you request.

You can find the full list of differences below.

Hard inquirySoft inquiry
Hard inquiries lower your credit score by a few pointsSoft inquiries have no effect on your credit score
Hard inquiries are visible to any creditors viewing your credit reportsSoft inquiries are only visible to a consumer checking their own reports
Hard inquiries are triggered in credit-related appraisalsSoft inquiries can be used for non-credit reasons, like insurance purposes

Common situations leading to hard inquiries

Applying for credit cards

Every time you apply for a credit card, the lender pulls your credit, which results in a hard inquiry on your credit report. Even if you get a pre-approval offer from a credit card company, when you complete the application, the lender pulls your credit, which results in a hard inquiry. Getting rejected for a credit card doesn't affect your credit score further, though.

Applying for loans

If you apply for any type of loan, such as a personal loan, car loan, or mortgage, the lender will pull your credit report to assess your creditworthiness, which will result in a hard inquiry on your credit report.

Rental applications

Rental applications can go either way: In some cases, they are soft pulls, but in others, they are not. The landlord is interested in seeing your financial responsibility and your credit score either way, so you may want to ask what you should expect.

Whether your rental application will result in a hard inquiry will depend on whether the landlord does a hard or soft pull. For the record, my experience renting apartments in New York City has been hard credit pulls along with a background check.

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How to minimize the impact of hard inquiries

Timing your inquiries

If you know that you will be buying a car, for instance, and visiting multiple dealerships, keep your shopping to a 14 to 45-day period. The credit algorithm will recognize these requests from lenders as one inquiry. 

Rate shopping 

Using our same example of buying a car, shop around with different lenders before going to a dealer. Compare loan terms and get the best interest rate and deal possible.

If you already have a preapproval with your bank or credit union, then you are only going to the dealer to look at the car — no hard inquiry needed. 

Frequently asked questions about hard inquiries

How can I remove a hard inquiry from my credit report? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

You cannot remove an accurately reported hard inquiry on your credit report, even if your credit application was denied. However, if you notice a hard inquiry on your credit report that you don't recognize, you can dispute your credit report with the credit bureaus. 

Does a hard inquiry mean I got approved? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

No, a hard inquiry does not mean you got approved. It just signals that a creditor pulled your credit report to review an application. They can still reject your application after pulling your credit report. 

Can I avoid hard inquiries when applying for credit? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

You cannot avoid hard inquiries when applying for credit. Hard inquiries will always be necessary for certain applications (mortgages, car loans), but you can minimize their frequency by planning ahead and only applying for credit when it is necessary.    

How can I check my credit report for hard inquiries? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

You can check your credit report for hard inquiries for free with all three of the major credit bureaus: Equifax, Experian, and TransUnion. 

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